Efforce: enabling Energy efficiency with Blockchain
When thinking about climate change and ways to reduce CO2 emissions, the first ideas one might have are flying less, switching to EVs, and eating less meat.
However, that’s leaving one sector completely out, which is the Energy sector. Surely, there is a lot of effort going into creating more green energy sources. Still, one way that isn’t as obvious for making a positive impact: increasing the energy efficiency of existing buildings, machines, etc.
Energy efficiency is a growing market that has already reached more than $241 billion and is expected to continue growing for the foreseeable future with a projected growth of 10% per year. Firstly, what energy efficiency refers to is “the ability of a physical system to obtain a given result using less energy than other so-called “lower efficiency” systems” (Efforce Whitepaper). Achieving energy efficiency increases the yield and allows energy savings. Despite its huge potential for positive change, more than 68% of the energy used in the world isn’t covered by energy efficiency standards.
Energy efficiency can decrease the natural resources such as oil and gas that countries need to import to cover their energy needs. One example is Japan, which decreased reliance on gas imports by 20% by increasing energy efficiency.
With technological advances and increasing digitization, the energy efficiency sector is slowly changing. Nevertheless, it remains a complex market with high entry barriers. One of the major difficulties in executing energy efficiency projects is bringing savers and contributors in contract, raising the capital required, and ensuring financial returns for investors.
Efforce is set to change this. One main concept behind Efforce is the tokenization of energy saved, which guarantees liquidity and extends access to capital investment. The token representing energy savings on Efforce is named WOZX. By securitizing, these savings Efforce is following its vision of connecting demand and supply of energy efficiency investments by harnessing the power of blockchain. Consequently, they remove several of the hindrances that investors currently face, including high initial cost, missing trust, lacking technical knowledge, and uncertainty over payback.
The process of Efforce mirrors the process in the real world in which energy services companies (E.S.Co) obtain positive economic returns against their initial investment through so-called energy performance contracts (EPC).
Execution of Energy Efficiency Improvement Projects
On efforce, anyone can submit a request for an energy efficiency improvement project secured by the decentralized ledger technology. Energy service companies will then evaluate those proposals, and if they are happy to work on that improvement, they will be implementing the measures to increase energy efficiency. For the duration of the contract, the beneficiary will be paying part of the energy savings generated (in the form of WOZX). Once the contract ends, beneficiaries take full advantage of the energy savings generated by the improvement project. The financial investments are fully carried by the Energy Savings companies, which aligns incentives as E.S.Co’s benefit more the higher the energy savings are.
The use of immutable blockchain technology ensures the integrity and uniqueness of data. The data is generated by smart meters that are equally certified on-chain.
All energy savings are securitized, and 1% of all energy savings obtained are donated and distributed among all Efforce token holders. Despite receiving these “dividends,” token holders can also participate in efficiency improvement projects and vote in governance decisions, including on the ratio of redistribution.
Unlike mining in other cryptocurrencies, which involves using computational power to solve a puzzle, efforce mining relies on increasing the number of savers and contributors to the platform.
Two different types of mining are laid out: major partner sign up and funding partner contribution. As the name suggests, major partner sign-ups involve bringing a company to Efforce to launch funding round for their energy project. For bringing a new company to the platform, up to 30% of the total amount allocated for this type of mining can be earned.
The funding partners' contribution rewards go to individuals or companies that invest most into energy improvement projects. The remaining 70% of tokens allocated for mining per year will go towards these.
The total supply of Efforce tokens is: 1,000,000,000 and no new tokens will ever be created. Tokens will be released according to the lock-up policy laid out in the Whitepaper. Of the total supply, 20% are allocated for Mining rewards.
As an ERC-20 token, WOZX can be stored in the common ERC-20 wallets like meta mask or on hardware wallets such as ledger or trezor. To buy, sell and trade the WOZX token, head to Bitcoin.com Exchange. WOZX can be traded with USDT and ETH.